252.270-7001 — Pilot Program to Incentivize Contracting with Employee-Owned Businesses—Subcontracting Certification.
Researched by the BidStride Research Team
What This Clause Requires
DFARS 252.270-7001 — Pilot Program to Incentivize Contracting with Employee-Owned Businesses—Subcontracting Certification.. This clause is part of the Defense Federal Acquisition Regulation Supplement and applies specifically to Department of Defense contracts.
Official Regulation Text
252.270-7001 Pilot Program to Incentivize Contracting with Employee-Owned Businesses—Subcontracting Certification. As prescribed in 270.105(b), use the following provision: Pilot Program To Incentivize Contracting With Employee-Owned Businesses—Subcontracting Certification (NOV 2024) (a) Definition. As used in this provision, qualified business has the meaning given in the Defense Federal Acquisition Regulation Supplement 252.270-7002, Pilot Program to Incentivize Contracting with Employee-Owned Businesses, clause of this solicitation. (b) Limitations on subcontracting. The Offeror certifies that in performance of the contract it will not expend more than 50 percent of the amount paid under the contract on subcontracts unless— (1) The subcontract is awarded to a qualified business; (2) The contract is for products and the subcontract is for materials not available from another qualified business; or (3) A waiver is granted. (End of provision) [89 FR 82186, Oct. 10, 2024]
Compliance Checklist
Flow-Down to Subcontractors
Flow-down required
This clause must be included in subcontracts with no subcontractors where the subcontractor will perform work covered by this clause. Typically appears in contract Section Section I.
Frequently Asked Questions
DFARS 252.270-7001 (Pilot Program to Incentivize Contracting with Employee-Owned Businesses—Subcontracting Certification.) is a Defense Federal Acquisition Regulation Supplement clause applicable to Department of Defense contracts.
DFARS 252.270-7001 is typically required in DoD contracts when the contracting officer determines it's applicable. Check Section I of your solicitation.
Flow-down requirements vary. Review the specific clause text for subcontractor applicability provisions.
This summary is for informational purposes only and reflects the BidStride Research Team's plain-English interpretation of the regulation. It is not legal advice and does not constitute an attorney-client relationship. Always consult the official Federal Acquisition Regulation (FAR) or Defense Federal Acquisition Regulation Supplement (DFARS) text and qualified legal counsel for compliance decisions.